HERO 2015-1 is the third PACE ABS to come to market, increasing total issuance in the space to $473 million. Kroll Bond Ratings has rated all three transactions and Deutsche Bank was the lead manager on the deals.
The asset-backed is due out in June or July. The company said doing a securitization translates to steep cost savings, alleviating the pressure to raise electric rates.
The major difference between this transaction and the previous one is the inclusion of 10 new California counties representing 2.3% of the collateral.
BofA Merrill analysts dispute that the ECB is making timid purchases of securitization because there isn't enough available. The bank could buy more by bidding aggressively in BWIC auctions.
The transaction, dubbed Willow No.2, securitizes subordinated notes issued by the Swiss mult-iline insurer, according to Standard & Poor's.
A two-year extension to the deadline for banks to conform CLO holdings to the Volcker Rule doesn't apply to all, the Federal Reserve says.
Despite regulatory hurdles, participants see nothing in the way of issuance reaching $60 billion to $70 billion this year.
Finke says the industry needs to address the lack of understanding about its performance and role in the economy.
Two academics argue that aggreggating standardized assets is key to solar securitization, which can meaningfully reduce funding costs for developers.
Despite pressure from Capitol Hill, regulators are disinclined to allow banks to hold collateralized loan obligations backed by bonds.
Firm: 3i Debt Management
It's one of the biggest regulatory hurdles the market has faced since the financial crisis, and promises to bring wholesale changes to the structures of transactions as well as to the business models of managers. Clifford Chance partner Steven Kolyer weighs in.Current Issue